Bombay HC: KDMC Ordered to Honor 1996 Wage Agreement for Workers

Quick Summary: The Kalyan Dombivli Municipal Corporation (KDMC) has been ordered to put into action a wage agreement from 1996 that was never carried out, despite deals with worker groups. The court decided in favor of the workers, insisting KDMC follow through.

The Background: KDMC's 1996 Agreement

Back in 1996, KDMC made a deal with two worker groups, the Municipal Mazdoor Union and the Akhil Bharatiya Safai Mazdoor Congress, to change wages based on the 5th Pay Commission. This was supposed to help workers get fair pay.

"The Municipal Corporation shall change the pay structure of the workers/employees..." — Settlement Agreement, January 3, 1996

The Workers' Complaint: Unfulfilled Promises

Fast forward to 2008, and the workers, including Mangal Shivaji Sonawani and others, were still waiting. They filed complaints under the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, demanding KDMC to honor the 1996 agreement.

KDMC's Defense: Timing and Technicalities

KDMC argued that the agreement was outdated and had been replaced by other deals like the Gawande Award. They also claimed the workers' complaints were too late, filed 12 years after the agreement.

The Industrial Court's Verdict: Stand by the Settlement

In April 2010, the Industrial Court ruled in favor of the workers, directing KDMC to implement the 1996 agreement. The court gave KDMC 60 days to act.

"By not implementing the Settlement dated 03.01.1996, the respondents have committed unfair labor practice..." — Industrial Court Order

Appeals and Higher Court Rulings

KDMC appealed the decision. However, in July 2011, a single judge upheld the Industrial Court's ruling, stating the agreement was still valid and binding.

The Final Judgment: No More Delays

On January 16, 2026, Judges G.S. Kulkarni and Aarti Sathe dismissed KDMC's further appeals. They emphasized that the agreement was made during conciliation proceedings, making it binding on all workers, not just union members.

"The settlement dated 3 January, 1996, was arrived at in the course of conciliation proceedings..." — Court Ruling

Summary of the Verdict

The court's final decision was a victory for the workers. KDMC must now carry out the pay changes, ensuring workers like Mangal Shivaji Sonawani receive the wages they were promised decades ago.